WallStSmart

American Eagle Outfitters Inc (AEO)vsBurlington Stores Inc (BURL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Burlington Stores Inc generates 111% more annual revenue ($11.91B vs $5.65B). BURL leads profitability with a 5.2% profit margin vs 5.0%. BURL appears more attractively valued with a PEG of 2.99. BURL earns a higher WallStSmart Score of 59/100 (C).

AEO

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 5.0Value: 6.0Quality: 6.0
Piotroski: 2/9Altman Z: 3.08

BURL

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 6.5Value: 2.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.95
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEOUndervalued (+10.7%)

Margin of Safety

+10.7%

Fair Value

$26.70

Current Price

$16.44

$10.26 discount

UndervaluedFair: $26.70Overvalued
BURLSignificantly Overvalued (-27.9%)

Margin of Safety

-27.9%

Fair Value

$239.08

Current Price

$317.05

$77.97 premium

UndervaluedFair: $239.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEO3 strengths · Avg: 9.3/10
P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.0810/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

BURL1 strengths · Avg: 10.0/10
Return on EquityProfitability
34.0%10/10

Every $100 of equity generates 34 in profit

Areas to Watch

AEO4 concerns · Avg: 3.0/10
Profit MarginProfitability
5.0%3/10

5.0% margin — thin

Operating MarginProfitability
2.4%3/10

Operating margin of 2.4%

Debt/EquityHealth
1.143/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

BURL4 concerns · Avg: 3.8/10
P/E RatioValuation
34.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
10.7x4/10

Trading at 10.7x book value

Altman Z-ScoreHealth
1.954/10

Grey zone — moderate risk

Profit MarginProfitability
5.2%3/10

5.2% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : AEO

The strongest argument for AEO centers on P/E Ratio, Altman Z-Score, Price/Book.

Bull Case : BURL

The strongest argument for BURL centers on Return on Equity. Revenue growth of 14.1% demonstrates continued momentum.

Bear Case : AEO

The primary concerns for AEO are Profit Margin, Operating Margin, Debt/Equity. Thin 5.0% margins leave little buffer for downturns.

Bear Case : BURL

The primary concerns for BURL are P/E Ratio, Price/Book, Altman Z-Score. Debt-to-equity of 3.20 is elevated, increasing financial risk.

Key Dynamics to Monitor

BURL carries more volatility with a beta of 1.46 — expect wider price swings.

BURL is growing revenue faster at 14.1% — sustainability is the question.

AEO generates stronger free cash flow (-127M), providing more financial flexibility.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BURL scores higher overall (59/100 vs 51/100) and 14.1% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

American Eagle Outfitters Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

American Eagle Outfitters, Inc. is a specialty retailer offering clothing, accessories, and personal care products under the American Eagle and Aerie brand names. The company is headquartered in Pittsburgh, Pennsylvania.

Burlington Stores Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Burlington Stores, Inc. is a branded apparel retailer in the United States. The company is headquartered in Burlington, New Jersey.

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